Insurance Terms

Here is a list of insurance related terms that may help you when reading your auto, home, or other insurance policies.

Accident Forgiveness

If you’ve been an accident-free policyholder for a certain number years you may qualify for this program. Accident forgiveness means that the insurance company won’t add a surcharge to your premium after your next at-fault accident.

A statistician who computes insurance risks and premiums. Actuaries keep the insurance company profitable and financially stable by setting prices, assessing trends, and determining how much to hold in reserve to pay claims.

Additional (supplementary) payments

This would include all defense or claim expenses, costs of bonds, including bail bonds for auto accidents and bonds to release attachments, cost of appeals, cost to insured for lost work for hearings, or post judgment interest. These costs are borne by the insurer and in addition to the limits of insurance.

Additional coverage

Coverage provided not listed in the insuring agreement that is automatic. This may add to the limits of insurance or be provided within the limits.

Adjuster

See Claim Adjuster.

Adverse Carrier

Term used to refer to the other party’s insurance company.

After-Market Parts

Parts made by a company other than the manufacturer of the auto. All parts we authorize meet or exceed the quality of the manufacturer’s parts, but cost less.

Agent

An individual who acts as a representative for the company and sells insurance, usually on a commission basis. This individual could be an ‘exclusive’ or ‘non-exclusive’ agent.

Agreed Price

The price or cost of repairs agreed to by the AD (auto damage) adjuster or independent appraiser and the body shop representative.

Amendment

A change to the basic policy contract. An amendment alters the policy; an endorsement adds to it.

Anti-lock Braking System (ABS)

A computer-controlled high pressure system that assists the vehicle’s normal braking system. ABS allows all wheels to slow at the same rate, thereby preventing loss of control.

Anti-Theft Device

A device that deters auto theft. Autos equipped with these devices may entitle you to a discount on your insurance premiums.

Appraisal

Method by which the insured and insurer settle disputes, each hiring an appraiser and splitting the cost of a third appraiser (umpire). Settlement is based on two of the three agreeing.

Appraisal

Process that determines the value of property, or the extent of damage, usually performed by an impartial expert.

Arbitration

A means of settling disputes agreed upon by insured and insurer where each hires an arbitrator and the arbitrators choose a third one. When two of the three agree the decision is binding on the insured and the insurer.

Arbitration

A process of settling a dispute through an impartial party. It is used as an alternative to litigation.

Assigned Risk (AIP)

A driver or vehicle owner who cannot qualify for insurance in the regular market. He or she must get coverage through a state assigned risk plan which specifies that each company must accept a proportionate share of these drivers/owners.

Assignment

(Transfer of legal right) of the insurance is usually only valid with the written consent of the insurer.

Assured

Means the same as an insured, policyholder, or someone who has an insurance policy.

At-Fault

The party that is legally liable for the damages in an accident.

Auto Damage (AD)

Division of the claims department that handles auto claims.

Auto Damage Adjuster

The auto damage adjuster is responsible for writing the repair estimate for your vehicle. This adjuster will also answer your questions about the repair process, your rental vehicle, or your total loss settlement.

Auto Insurance

Auto Insurance provides protection from losses resulting from owning and operating an auto. The insurance covers losses to the insured’s property and losses for which the insured is liable as a result of owning or operating an auto.

Auto Theft

The theft of an auto is a type of loss that is covered under comprehensive coverage.

Binder

A temporary agreement declaring that the policy is in effect. Used in certain cases to protect a policyholder when it is not possible to issue or endorse the policy immediately.

Binders

Temporary coverage issued by the producer until the insurer issues a policy or declines coverage.

Binders

Temporary coverage issued by the producer until the insurer issues a policy or declines coverage.

Bodily Injury Liability Coverage

Pays damages for bodily injury or death resulting from an accident for which you are at fault and provides you with a legal defense. This coverage is subject to the terms, limits and conditions of your policy contract.

Bodily Injury

An injury sustained by a person.

Burglary

Breaking and entering or forced entry into a locked premises with the intent to steal, including stealing and breaking out.

Cancellation

Terminating a policy during the policy period under the provisions of the policy by either the insured or the insurer. The provision requires the insurer to give written notice in advance and the reason it is canceling.

Cancellation

Termination of an insurance contract before the end of the policy period, by the insured or insurer.

Carrier

The insurance company or insurer.

Catastrophe

A disaster affecting a specific geographic area. Catastrophes often cause injury or even death; most result in extensive property damage. Hurricanes, floods, tornadoes, and even large hailstorms are typical examples of catastrophes.

Certificate of Financial Responsibility (CFR)

See SR-22

Certificate of Satisfaction

A form signed by the insured when he or she takes delivery of the car from the repairer. It certifies that he or she is satisfied with the vehicle operations, appearance, and visible quality of the repairs.

Claim Adjuster

A person responsible for investigating and settling a claim.

Claim

Any request or demand for payment under the terms of the insurance policy.

Is a provision in a policy requiring the insured to insure to value or the insured will be penalized after a partial loss. The loss will then be paid on a pro rated basis.

Collision Coverage

Pays for damage to an insured vehicle when it hits or is hit by another car or object, or if the car overturns. This coverage is subject to the terms, limits and conditions of your policy contract.

Comparative Negligence

A doctrine of law that, in some states, may enable claimants to recover a portion of their damages even when they are partially at fault, or negligent. Each party’s negligence is compared to the other’s and a claimant’s recovery can be reduced by the percentage of his or her own negligence.

Competitive Auto Repair Parts

Parts made by a company other than the manufacturer of the auto. All parts we authorize meet or exceed the quality of the manufacturer’s parts, but cost less.

Competitive Estimate

A term used when an insurance company requests that you submit multiple repair estimates for consideration.

Comprehensive Physical Damage Coverage

Pays for damage to your car from theft, vandalism, flood, fire or other covered perils. This coverage is subject to the terms, limits and conditions of your policy contract.

Concealment

Occurs when a party in the contract does not disclose information necessary to the other party. A lie (misrepresentation) and concealment are not the same.

Condition

The portion of the insurance contract which outlines the duties and responsibilities of both the insured and the insurance company.

Conditions

Statements in the policy that tell what the responsibility of each party is in the contract to get the other party to perform.

Condo Insurance

A type of homeowners insurance that meets the special needs of condominium owners.

Contributory Negligence

A doctrine of law that, in some states, may prevent claimants from recovering any portion of their damages if they are even partially at fault, or negligent.

Coverage

Protection and benefits provided in an insurance contract.

Customized Vehicle

A vehicle that has been altered or has equipment or accessories not typically found in a personal vehicle.

Damage

Loss or harm to a person or property.

Damages

Money that one party becomes legally obligated to pay to another party.

Declarations Page

The declarations page is usually the front page of the policy which contains personalized information not shown in the body of the policy. Declarations contain: Insureds name and address Policy period – time coverage begins and ends Amount of coverage Premiums Deductible List of endorsements, usually by endorsement number only Schedule of coverage Property description Insurer (Insurance company)

Declarations

The part of your policy that includes your name and address; the property that is being insured, its location and description; the policy period; the amount of insurance coverage and the applicable premiums.

Deductible

The initial amount of loss an insurer will not cover. It is usually stated as a dollar amount or as a percentage of the amount of coverage. Losses greater than the deductible are covered up to the policy limit.

Deductible

The portion of a claim you pay out of pocket. Choosing a higher deductible will lower your insurance premiums.

Defensive Driver Discount

Certain drivers (usually over age 50) who have voluntarily taken a defensive driving course may qualify for this discount on their auto insurance premiums.

Definition of the insured

Person to whom the benefits are paid or paid on behalf of; may be the named insured who is directly responsible for the policy.

Depreciation

The decrease in value of any property due to wear, tear, and/or time. Generally, depreciation is not an insurable loss.

Direct Check

An Electronic payment method that lets you to pay your premium online with an electronic check.

Direct Pay

See Electronic Funds Transfer.

Discount

A reduction in your premium if you or your car meet certain conditions that are likely to reduce the insurer’s losses or expenses. For example, auto insurance discounts are given for cars with auto theft devices and for drivers and passengers who use seat belts.

Drive-In Claims

An office staffed with claims employees where insureds and claimants bring their vehicles for damage inspections and estimates.

Driver Training Discount

A discount for people who have taken an approved driver training course. This discount is not available in all states or for all individuals.

Duties of the insured after a loss

An important policy provision in the conditions outlining the exact responsibilities of the insured after a loss. The substance of this provision would vary depending on whether the loss is a property loss or a casualty loss. However, all begin with notifying the insurer after a loss.

eBill

An electronic version of your bill that you can review online.

Effective dates of coverage

The policy period stated in the declarations provides the time period in which an occurrence usually must occur to be covered. It may be initiated with a binder.

Electronic Funds Transfer (EFT)

EFT is an electronic payment method that lets you pay your premiums with automatic deductions from your checking account.

Elements of a contract:

Consideration. (May be money, an act, a promise or information)Offer and acceptance – begins the contracting processCompetent parties only may contractTime element. (6 mos., 1 year or until age 100 for life insurance)Legal purpose

Emergency Road Service Coverage

Protection for problems that are not typically handled by your auto insurance, such as:– being locked out of your car– towing not related to an accident– having a dead battery re-charged– inflating a flat tire– filling an empty gas tank.

Endorsement

An addition to the basic policy contract. An endorsement adds to the policy contract; an amendment alters it.

Endorsements

Are amendments to the contract (policy) that change the contract. These may negate provisions or add additional coverage and supersede the original contract.

ePolicy

Electronic system that allows you to review your policy documents online.

Estimate

An assessment of the cost to repair your damaged property.

Exclusion

Restriction in your insurance policy that limits and may exclude coverage for certain perils, persons, property, or locations.

Exclusions

Narrow the broad promise made in the insuring agreement. In many instances it is more concise to list what isn’t covered than to list what is covered.

Expiration Date

This date, found on your declarations page, indicates when your policy coverage runs out. Your renewal policy will start on this date.

Extensions of Coverage

Usually coverage provided when certain conditions are met in the policy.

Fair Credit Reporting Act

Requires certain action by a reporting agency and an insurance company when consumer reports cause applicants to be denied coverage. The act allows the consumer to identify and correct erroneous information in his credit (consumer) report.

Field Adjuster

An insurance adjuster who works primarily outside of an office and often meets personally with the public. Field adjusters can conduct face-to-face meetings, negotiations with claimants, scene investigations, and damage inspections.

Financed Car

A vehicle financed by a loan. The lender retains a lien on the auto until it has been paid off.

First Party Claims

A claim for damage, loss or injury made by an insured.

First Party

Term used to refer to an insured.

Forms

Two types of forms are important in insurance: 1. pre-printed contracts that comprise your insurance policy, 2. questionnaires or coverage selection forms that a policyholder is required to fill out.

Good Student Discount

May be awarded to full-time students who maintain a grade average of “B” or better.

Hazard

Anything that increases the chance of an accident occurring.

Hazard

Anything that increases the likelihood or seriousness of a loss. Moral – An insured who is dishonest. Morale – A careless or irresponsible person. Legal – A producer fails to explain important exclusions in a policy.

Homeowners Insurance

Protects homeowners from losses to their homes, personal property, and some types of damage or injury to others for which the homeowner is liable. Homeowners insurance is subject to the terms, limits and conditions of your policy contract.

Indemnification

The act of providing compensation for a loss with the intent to restore an individual or entity to the approximate financial position prior to the loss.

Indemnify

Restore to the same financial condition as before the loss.

Indemnity

Compensation for a loss intended to restore an individual or entity to the approximate financial position prior to the loss.

Independent Adjuster

An individual who estimates losses on behalf of an insurance company, but is not an employee of that company.

Inspection

Verification of a vehicle’s physical condition.

Insurable Interest

Exists when an individual would suffer an economic loss as the result of damage to property or bodily injury.

Insurable Interest

For an applicant to have an insurable interest he must: Face a personal risk of loss, Have a legitimate financial interest in preserving life or property being insured, Not achieve a potential gain from the insurance applied for, Have interest at the time of loss for Property and Casualty Insurance

Insurance Card

See Insurance ID Card.

Insurance Fraud

The act of falsifying or exaggerating the facts of an accident to an insurance company to obtain payment that would not otherwise be made. Common types of insurance fraud are staged accidents, exaggerated injuries, and inflated medical bills.

Insurance ID Card

Also known as an Insurance Card, this card is issued by your insurer and contains basic information about your insurance policy. Some states require you to keep an insurance ID card in your vehicle.

Insurance Score

Used in the underwriting process in some states. An individual’s insurance score is frequently based, in part, on a person’s credit history.

Insurance

Insurance is a system in which groups of people who have similar chances of suffering a loss transfer their risk of loss to an insurer who pools the risk of many people together. In exchange for payment of premium, the insurer promises to reimburse the person for their covered losses.

Insured

A person or organization covered by an insurance policy.

Insurer

An organization that provides insurance.

Insuring agreement

This agreement states that the risk of loss is transferred to the insurer and that the insurer will pay rather than the insured suffer a financial loss. This is usually a very broad statement of responsibility on the insurers part. It is the promise of action in the future by the insurer.

Leased Vehicle

A vehicle rented under a long-term contract (lease). The leasing company retains ownership of the vehicle and must be shown on your insurance policy as an insured.

Legal Liability

Liability imposed by law, as opposed to liability arising from an agreement or contract.

Liability Adjuster

The liability adjuster handles the investigation of the accident. These adjusters’ responsibilities can include collision payments, property damage payments, and bodily injury settlements. In some states, these adjusters may also handle the medical portion of your claim.

Liability Insurance

Insurance that provides protection from claims arising from injuries or damage to other people or property.

Liability Investigation

The process of gathering information to determine the cause of an accident.

Liability

A legal obligation usually incurred in insurance when the insured carelessly causes a loss to another. A person who has a liability owes another person.

Liability

Any legally enforceable obligation or responsibility for the injury or damage suffered by another person.

Lien

A claim, charge, or encumbrance on property as a security for the payment of a debt.

Lienholder

A person or organization with a financial interest in property up to the amount of money borrowed or still owed on the property.

Limit

The maximum amount of protection purchased by the insured for a specific coverage.

Limitations

Are different from exclusions in that the insurer will pay for a covered loss but may limit the actual coverage amount and circumstances to which the coverage would apply.

Limits of Liability

The amount specified in your policy up to which the insurance company will protect you.

Limits of liability

Typically an insurer will pay after a property loss the actual cash value of a loss or the cost to repair or replace, up to the coverage limit shown in the declarations. For casualty losses it is usually the maximum the insurer will pay in any one occurrence.

Loss of Use

Compensation to a third-party claimant for financial consequences resulting from the inability to use property as the result of accident-related damage.

Loss settlement provisions

Describe the method of settlement after a loss. It states the conditions under which the insurer will pay, repair or replace and the valuation that will be used. In most cases the options of settlement belong to the insurer as it determines the least expensive method of indemnification. However, under the provision “consent to settle” the insured may restrict the insurer’s ability to settle in a third party liability claim. In that case the insured may be liable for awards by the court that exceed an initial settlement offer accepted by the third party.

Loss

Any measurable dollar cost of damage and/or injury suffered by a person.

Covers repairs to all mechanical parts of the car, protecting you from expensive repair bills.

Medical Adjuster

The medical adjuster is responsible for reviewing all medical bills, replacement/essential services, and lost wages submitted to the company for injuries sustained by you and/or the passengers in your vehicle (depending upon the state in which you live and the coverage on your policy).

Medical Payments Coverage

Pays medical expenses related to an automobile accident. This coverage is subject to the terms, limits and conditions of your policy contract.

Misrepresentation

To make written or verbal statements that are untrue or misleading.

Misrepresentations

Are statements that one knows are not true, a lie.

Mortgagee rights

The mortgage company has the right to be reimbursed up to its loan amount and not lose its right of recovery from the insurer because of negligent acts of the insured. It also has the right to be notified in advance if the insurer is canceling or non-renewing a policy.

Motor Vehicle Report (MVR)

A report from the agency that issues your driver’s license, listing accidents and violations that appear on your driving record. This report is used to verify information provided by insurance applicants and policyholders.

Motorcycle Insurance

Provides protection from losses resulting from owning and operating motorcycles.

Motorcycle Safety Foundation (MSF)

An international non-profit organization dedicated to motorcycle safety training, research and awareness. Some applicants who complete MSF courses may qualify for discounts on Motorcycle Insurance.

Multi-Car Discount

Available to policyholders who insure more than one vehicle at the same location.

Mysterious Disappearance

A property loss of unknown origin.

Named Insured

The person or entity listed on the policy declarations page.

National Insurance Crime Bureau (NICB)

A not-for-profit organization that partners with insurers and law enforcement agencies to facilitate the identification, detection, and prosecution of insurance criminals. The NICB receives support from over 1,000 property/casualty insurance companies.

Negligence

Failing to act in a prudent manner that results in a loss to others. Elements of negligence are: There is a legal duty to do or not to do It is not done There is a loss caused by the individual’s actions There is an unbroken chain of events between the cause (proximate cause) and outcome Comparative Negligence – Defense used where the other party may be negligent also.

Negligence

The failure to exercise the care that is expected of a reasonable person in similar circumstances.

No-fault Insurance

May pay for your medical treatment, lost wages, or other accident-related expenses regardless of who caused the accident. This coverage is subject to the terms, limits and conditions of your policy contract and is not available in all states.

Non-Renewal

When an insurer decides not to renew a policy at the end of its policy period.

Nonrenewal

Terminating a policy at the end of the policy period by the insurer by giving advanced written notice it will not contract (insure) again following the expiration of the current policy.

Notice of claim

Notice that a loss has occurred and compensation is being requested from the insurer.

Obligations of the insurer

For property insurance the basic obligation of the insurer is to pay after a covered loss. However, in a casualty claim the insurer may choose to defend the insured at the insurer’s expense rather than pay a claim.

Occurrence

An event that may be either sudden or over a period of time in which there is a loss.

Occurrence

An event, or repeated exposure to conditions, which unexpectedly causes injury or damage during the policy period.

Original Equipment Manufacturer Parts

Auto parts obtained from the original manufacturer of the car or the supplier of the original part.

Other insurance

Refers to another policy that covers the same exposure as covered under this policy.

Pair or set clause

For a valuable pair or set the insurer will repair or replace or pay the actual loss in value to the set.

Passive Restraint System

A passenger safety system, such as an air-bag, that activates automatically in the event of an accident.

Payment Plans

Your auto insurance premium can be paid using one of our installment payment plans; you make several smaller payments but incur a service fee.

Payment Recovery

If your car is damaged because of another driver’s negligence and you ask your insurance company to settle the claim for damage to your vehicle, we will seek to recover your deductible and our payments from the other party. This process of payment recovery is also called subrogation.

Peril or Cause of Loss

A cause of potential loss such as fire, water, or theft.

Peril

A danger or hazard that can cause a loss, for example, a car collision with an object, or a fire.

Personal Injury Protection

May pay for your medical treatment, lost wages, or other accident-related expenses regardless of who caused the accident. This coverage is subject to the terms, limits and conditions of your policy contract and is not available in all states.

Personal Property

Property that is not land or connected to land (real estate), such as furniture or jewelry.

Physical Damage

Damage to property.

Policy Change

Any change made to your insurance policy during the period that the policy is in force.

The state of the vehicle before the accident, including damage not related to the accident, mileage, options, and other factors.

Premium payments

Are part of the insured’s consideration in the policy and are required to be paid.

Premium

The price of the insurance policy that the insured pays in exchange for insurance coverage.

Primary Insurance

Insurance that must be maintained as a condition of a Personal Umbrella Policy (GPUP). Primary insurance acts as the first layer of coverage on common types of losses. This usually includes auto, motorcycle and homeowner insurance, but may also include boat insurance, commercial liability or some other policy. Please check your insurance policy documents for more detailed information.

Proof of Loss

A statement made regarding the extent of the claim; it may be requested in accordance with the conditions of the policy.

Proof of loss

Sworn statement submitted by insured within 60 days after insurer requests, declaring losses to be indemnified by insurer. This is submitted before any settlement.

Property Damage Liability Coverage

Pays for damage to someone else’s property resulting from an accident for which you are at fault and provides you with a legal defense. This coverage is subject to the terms, limits and conditions of your policy contract.

Proximate cause

A loss caused as the direct result of a peril, where an unbroken chain of cause and effect exists between the occurrence of the insured peril or negligent act and resulting damage or injury.

Proximate Cause

An act or omission initiating an unbroken sequence of events resulting in injury to a person or damage to property.

Quote

A statement of the premium that will be charged for insurance coverages based on specific information provided by the person requesting the quote including drivers, vehicles, and driving record.

Rate

Often used as a synonym for premium but actually refers to the base rating units that are used to determine the final premium.

Rating Plan

The rules that determine the cost of your insurance premium. These rules modify the base rates by applying discounts and surcharges based on your personal characteristics, for example, using your seat belt, insuring more than one car.

Reinspection

A review of an estimate or appraisal done by an adjuster during or after repairs to a vehicle. This is done to guarantee the accuracy of staff or independent auto damage personnel, and to guarantee that the work required in an estimate or appraisal is being completed by the body shop.

Release

Legally binding contract stating that all obligations past, present or future arising from a particular accident or occurrence have been fulfilled.

Renewal Date

The date that your insurance policy expires and the date that your renewed policy will begin.

Rental Reimbursement

Optional coverage that helps pay rental vehicle costs when your insured vehicle is disabled as the result of a covered accident or loss. Available to most policyholders for an additional premium.

Renters Insurance

Insurance that provides protection from losses that arise out of the rental of a home. Protection covers losses to the insured’s property, not to losses that occur as a result of owning a home.

Replacement Cost (RC)

New cost at the time of loss.

Replacement Parts

Several types of parts may be used when your vehicle is repaired: new parts, both original equipment manufacturer and after-market; and recycled parts. New or after-market parts will be used if we can’t find like-kind and quality recycled parts. A 5-year-old car, for instance, would be repaired with parts at least as good as the parts that had been in the car. We guarantee the after-market parts used for these repairs for as long as you own the car.

Representation, Warranty, Concealment:

Representation – Applicant makes statements believed to be true on the application Warranty – Statement in contract guaranteed to be true; breach of warranty can void the contract Concealment – Failing to disclose a material fact may result in a claim being denied

Representations

Are statements that one believes to be true. It may not be true.

Resident Adjuster

Staff adjuster who handles claims in remote areas of a region.

Rider

In motorcycle insurance, a rider is someone who will operate the insured motorcycle. In life and health insurance, the term ‘rider’ is often used to refer to an endorsement to an insurance policy.

Right of salvage

After a loss the insurer usually retains the right to repair, replace or pay the value of the property and keep the property, whichever is the least costly. In the event the insurer pays the value of the property and allows the insured to also keep the property, it will deduct the salvage value from the settlement amount.

Risk

The chance of suffering a loss.

Risk

Uncertainty about a loss that exists whenever more than one outcome is possible. The possibility of loss.

Robbery

The taking from an individual with threat of bodily harm.

Salvage

Damaged property which is taken over by the insurance company after payment of a claim.

Self-Insured Retention

In umbrella insurance, self-insured retention is similar to a deductible in other types of insurance. The self-insured retention is the amount of damages for which the policyholder is responsible before the umbrella coverage begins to cover a loss.

An SR-22 (CFR) is a certificate mandated by the state to verify that an individual is maintaining auto insurance liability coverage. If a person needs an SR-22 (CFR), they will usually be notified by their state’s Motor Vehicle Department.

Staff Adjuster

Individual employed by the insurance company to handle claims.

Subrogation

If your car is damaged because of another driver’s negligence and you ask your insurance company to settle the claim for damage to your car, we will seek payment recovery (including your deductible) from the other party. This process of payment recovery is called subrogation.

Subrogation

Legal process which allows the insurer to collect from a third party liable to the insured.

Supplement/Supplemental Estimate

Used to cover damage not included in the original estimate.

Theft

The unlawful taking of another’s property with the intent to permanently deprive the owner of its use or possession.

Theft

Wrongful taking (stealing) that encompasses both robbery and burglary.

Third Party Claim

Claims for injury or damage to property of a third party alleged to have been caused by the insured.

Third Party

Person or entity not party to an agreement but with an interest in the agreement.

Tort

A private or civil wrong or injury, other than breach of contract, which violates a person’s legally protected right(s), and for which the law may permit a remedy in the form of money damages.

Tortfeasor

One who commits a tort (see above).

Total Loss

Property that has sustained damage so extensive that repairing it is not reasonable. A vehicle is considered a total loss if it cannot be repaired safely, if repairing the vehicle is not economically practical, or if state regulations require us to consider it a total loss.

Towing and Labor Coverage

Provides insurance if your auto needs to be towed or requires roadside assistance.

Types of loss

Direct – Loss or damage to property. Indirect – Related to and following a direct loss (loss of use).

Umbrella Insurance

Provides high limits of additional liability coverage above the limits of your homeowners and auto policy. In addition, it provides coverage that may be excluded by other liability policies.

Underwriting

The process an insurer goes through to determine whether or not it will provide coverage for an applicant.

Uninsured Motorist Coverage

In some circumstances, may pay for your injuries or property damage caused by an uninsured motorist or, in some states, an unidentified driver. In some cases it also includes coverage for underinsured motorists and at-fault drivers with insufficient insurance to pay your claim. This coverage is subject to the terms, limits and conditions of your policy contract.

Vacancy and Unoccupied

Vacant (empty); unoccupied (no people).

Vandalism

Destruction or defacement of property.

Vehicle Identification Number (VIN)

A 17-digit number assigned to each vehicle manufactured in the United States after 1980. This number is used for identification purposes and is visible on the dashboard when viewed from the outside of the vehicle.

Warranty

A written guarantee of the integrity of a product and of the manufacturer’s responsibility for the repair or replacement of defective parts.